Global Hunter Securities Upgrades Tesco (TESO) to Buy; Moving Out of the Sin Bin

January 5, 2012 8:14 AM EST Send to a Friend
Get Alerts TESO Hot Sheet
Price: $13.60 +4.78%

Rating Summary:
    12 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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Global Hunter Securities upgraded Tesco (NASDAQ: TESO) from Accumulate to Buy with a price target of $19.00.

Global analyst says, "We are transferring lead coverage responsibilities for TESO following an analyst departure. We are also upgrading TESO on the basis of several looming potential catalysts and on our expectations for an improved operating margin progression in the Top Drives segment in 2012."

"TESO shares have, in our view, been more than adequately penalized for what should ultimately prove to be transitory self-inflicted underperformance in Q3:11. We acknowledge that the margin degradation related to supply chain management will take at least a few more quarters to fully resolve. However, operating margins in the Top Drives segment should undergo a modest positive step change in Q4:11 and make a gradual progression higher in 2012 as management refines internal processes and finalizes the ERP system implementation."

For an analyst ratings summary and ratings history on Tesco click here. For more ratings news on Tesco click here.

Shares of Tesco closed at $13.19 yesterday.


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